(1)In section 14 of the Broadcasting Act 1990 (establishment of Channel 3)—
(a)omit subsection (7) (restriction on providing a single Channel 3 service for the whole of England or the whole of Scotland), and
(b)after that subsection insert—
“(7A)The areas mentioned in subsection (2) must at all times include at least one area that comprises, or falls entirely within, Scotland.”
(2)Section 216 of the Communications Act 2003 (renewal of Channel 3 and 5 licences) is amended as follows.
(3)For subsection (4) substitute—
“(4)Where OFCOM receive an application under this section for the renewal of a licence they must—
(a)decide whether to renew the licence; and
(b)notify the applicant of their decision.
(4A)If OFCOM decide to renew the licence they must—
(a)in the case of a licence to provide a Channel 3 service, determine in accordance with section 216A the area for which the licence will be renewed;
(b)in every case, determine in accordance with section 217 the financial terms on which the licence will be renewed; and
(c)notify the applicant of their determinations.”
(4)After subsection (6) insert—
“(6A)OFCOM may also decide not to renew a licence to provide a Channel 3 service if, for the licensing period in question, they have renewed or propose to renew one or more other licences to provide a Channel 3 service for all of the area to which the licence relates.”
(5)In subsection (8)(a) for “subsection (4)(c)” substitute “ subsection (4A)(c) ”.
(6)In subsection (10) for the words from “, in accordance” to the end substitute “—
(a)to any determination under subsection (4A)(a);
(b)in accordance with the determination under subsection (4A)(b), to the requirements imposed by section 217(4).”
(7)After section 216 of that Act insert—
(1)This section applies if OFCOM decide under section 216(4) to renew a licence to provide a Channel 3 service.
(2)The area determined under section 216(4A)(a) for the licence—
(a)must include all or part of the area to which the licence being renewed currently relates, and
(b)may include all or part of another area if the holder of the licence to provide a Channel 3 service for the other area gives (and does not withdraw) consent before the determination is made.”
(8)In section 217(1) of that Act, in the opening words, for “section 216(4)(b)” substitute “ section 216(4A)(b) ”.